Approved Qde No. 84-Supplernent No. 19 Registry No. 1104-05 

NATIONAL RECOVERY A MINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

I 

FOR THE 

CAP SCREW 

MANUFACTURING INDUSTRY 

(A Division of the Fabricated Metal 'Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry.) 

AS APPROVED ON MAY 3, 1934 

WE DO OUR PART 

... -

A 1 1 " ----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the S uperinte nde nt of Documents, Washinglon, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of tlie Bureau of Foreign ~nd Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

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Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commer ce Building. 

Charleston, S.C. : Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detr oit, nfich. : 801 First National Bank Building. 

H ouston, Tex. : Chambet of Commerce Building. Indianapolis, Ind. : Chamber of Comme1·ce Building. 

J acksonville, Fla.: Chamber of Commerce Building. 

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Los Angeles, Calif.: 1163 South Broadway. 

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Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 84-Supplement o. 19 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

CAP SCRE\V MANUFACTURING INDUSTRY 

As Approved on fday 3, 1934 

ORDER 

APPROVING uPPLEMENTARY ODE OF FAIR CoMPETITION FOR THE CAP 

CREW NlANUFACTURI G IND STRY 

A DIV:I ION OF THE F ABRI ATED METAL PRODUCT' MANUFACTURING AND 

METAL FINI RING AND METAL COATING INDUSTRY 

An application ha,ing been duly made pursuant to and in fnll 

compliance with the pro 'I isions of Title I of the National I ndustrial 

Recovery Act, approved June 16, 1933, and in accordance with the 

provi ion of Section I of Article VI of the Basic Code for the 

Fabricated :Metal Product :Manufacturing and Metal ini jno- and 

Metal Coating Industry, approved November 2 1933, for app.:oYal 

of a Suppl mentary Code of Fair Competition for the ap crew 

:Manufacturing I ndu try and hearing having been duly held there- on · and the annexed report on said Supplementary Code containing 

finding with respect thereto, havino· been made and directed to the 

P resident : 

NO\V THEREFORE, on behalf of the President of the United 

tate , I H ugh S. Johnson, Admini trator f or Industrial Recove ry, 

pur uant to authority ve~ ted in me by Executive Order of th Pre - ident, including Exe utiv Or ler ro. 6543-A, dated December !3 0, 

1933 an l therwi e · do her by incorporate by reference said annexed 

r port and do find that aid Suppl mentary Code complie in all 

re pect with the pertinent provision and will promote the poli y 

and purpo. e of aid Title of aid Act · and do hereby order that 

aid upplementary Code of Fair Competition be and it is her I y 

appro ed · subject, how v r to th following condition : 

That the provision of Article V S cti n 2 in afar a th J r recribe a waiting peri d between the filing with the Code Authority 

or uch ag ncy as may be designated in the Code and he :ff cti ve 

dat f pri e lists, as originally filed andj or revi ed pri li t.· r 

re i. ed t rm and conditions of sal be and they her b ar ta a 

pendina my further rder. 

Approval recomm nded: 

A. R . . LAN y 

H uoH S. J oHN oN, 

Adhninistrcctor for IruiA.IJst1-ial R ecovery. 

Division Administrator. 

w ASHI GTON D.c. 

May 3, 1934. 

566 6°-544-16-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The 1V hite H attse. 

SIR: This is a report on the Supplementary Code of Fair Competition for the Gap Screw Manufacturing Industry, a divisiqn of the 

Fabricatec111etal Products IYianufacturing and :Metal Finishing and 

l\1etal Coating Indu try, the hearing having been conducted thereon 

in 'Vashington, D.C., February 2, 1934, in accordance with the 

provisions of Title I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Cap Screw :Manufacturing Industry, being truly repre entative 

of this division of the Fabricated Metal Product Manufacturing and 

Metal Finishing and l\1etal Coating Industry, has .elected to avail 

itself of the option of submitting a Supplementary Code of F .air 

Competition, as provid-ed for in Section 1 of Article VI of the Basic 

Code for the Fabricated :Metal Products Manufacturing and Matal 

Finishing and Metal Coating Industry approved by yon on the secoLJ.d 

day of November, 1933. 

RE-SUME OF THE CODE 

Article I states the purpose of the .Supple1nentary Code. 

Article II accurately defines specific terms en'lployed m th.e 

Supplementary Code. 

Article III. This Industry is a division of the Fabricated Metal 

Products Manufacturing and MeW Finishing and Metal Coating 

Industry and the labor provisions of its Basic Code, as approved 

November 2, 1933, are the labor ·provisions of this Supplomentary 

Code. 

Article IV establi . e a Sup1)lementary Code Authority con isting 

of five ( 5) member to be elected by the members of the Industry at 

a meeting called by the Temporary Supplementary Code Con1mittee, 

and gives the Administrator the authority to appoint one additional 

member without vote and provides machinery for obtaining statistics 

and the administration of the Supplementary Code. 

Article V provides for 1nethods of setting Dl9 and revising price 

lists. 

Article VI provides for dater:tnin.IDg the lowest reasonable costs 

of the products of this Industry. 

Article VII sets forth the unfair trade pracbces of this Supplem.entary Code which has been especially desio-ned to off et unfair 

competition in this division of the Industry. 

Article VIII provides against monopolies and monopolistic 

practices. 

Article IX contains the mandatory provision contained in Section 

10 (b) and also provides for the submi ion of proposed amendments 

to the Supplementary Code. 

(2) 
rti 1 ..~. r 

a ditional in r 

rti l ..~. I 

u pl m ntar 

3 

FINDL' 

limit d to a tual 

dnt and durati n of this 

Th lmini. trat r in hi ~ final report. t m on said uppleha Ying f un 1 as bore in · t forth an l on th ba ·i of 

all the Jr dina in thi matt('r: 

I fin l that: 

(a) aiel uppl men tar. le i. w 11 d signa ted t pr mot the 

p li ie an l purpo of Title I of th National Inclu trial Re ery 

A t., in lu Ena r m Yal f ob truction.- t the fr fi w of int r tate 

an l f r io-n ommer e "·hi h tend t dimini h the am nnt th reof and 

will proYide for th a n ral wel£ar b t romoting the rganization 

of in lu. try for th pnrpo of c op ratiY a tion among the trade 

group , b~- inducing and maintainino- united a tion of labor and 

mana o- m "nt un ler a lequate governmental an tion and upervision, 

b 7 eliminatino- unfair comp titiYe pra tice , by promoting th full t 

po ibl utilizati n of th pre ent productiY capaci y of indu tri 

by aYoi ling undue re triction of production (except a ... may be temporarily r quir d), by increa ino· th con umption of indu trial 

and aoTi ultural products through in r ea ina purcha ing power, by 

r lu ino- an l relieving un mployment, by improvino· . tandard of 

labor and by otherwise rehabilitating industry. 

(b) Said In lu try normallv emplo. not more than 50 000 emplo} ·; an l i n t la ified by me a a major in lu try. 

(c) The uppl mentary Code a approv d complie in all re pect 

with the pertinent provisions of said Title of . aiel Act, including 

without limitation Sub ection (a) of Section 3 Sub.. tion (a) of 

S -ti n 7 and ub ection (b) of Section 10 thereof · and that the 

applicant roup i an indu trial o-roup truly repre entative of the 

afore aid Inclu try · and that said a o iation impo e no inequitable 

r triction on adnu ion to member hip ther in. 

(d) Th upplementary o l i not de igned to and will not 

permit monopolie r monopoli tic practi e . 

(e) The upplementary Code i not designed to and will not 

eliminate r oppr . mall enterpri es and will not perate to 

eli criminat again t them. 

(f) Tho en ·a d in other t p of the conomi pr e have 

not b n d pri d f the right to be heard prior to approval of aid 

u 1 m ntary Code.' 

For th e reason therefore, I ha e approved this upplem ntary 

Cod. 

Re p ctfully, 

MAy 3, 1934. 

HuoH . JoHN oN, 

Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE CAP SCREW MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 

METAL FINISHING AND METAL COATING INDUSTRY 

ARTICLE I-PURPOSES. 

To effectu.ate the policy of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supplementary Code of Fair Competition for the Cap Screw Manufacturing Indu try. Pursuant to Article VI of the Basic Code of Fair 

Competition for the Fabricated Metal Products Manufacturing and 

Metal Finishing and Metal Coating Industry, approved by the Pres- ident on the 2nd day of November, 1933, the provisions of this Supplementary Code hall be the standard of fair competition for such 

Industry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SEcTION 1. The terms "President", HAct ", and "Admini trator ", 

as used herein, shall mean respectively, the President of the United 

States, the National Industrial Recovery Act, and the A.~ministrator 

for Industrial Recovery under aid Act. 

SECTION 2. The term "Cap Screws" is defined as steel screws of a 

type well known to the trade and having head styles commercially 

de. cribecl as hexagon, square, fillister, fiat, button and round, manufactured from straight carbon steel containing carbon in excess of .25 

per cent, or manganese in excess of .80 per cent, or from any alloy 

steel without regard to finish, or manufactured from any steel if full 

:finished or semi-finished (machined under side or top of head or both) 

and also other items such as connecting rod bolts which are similar 

to and manufactured on the same equipment a Cap Screws and come 

within the above metallurgical design and finish classification and 

hexagon head cap screws manufactured from any steel with . the 

required or repr sented effective tensile strength in excess o£ 95 

thousand pounds per square inch. The term ".Cap Screws" also includes "Set Screws", which are defined as steel screws, with square 

head or slotted headless, case hardened or otherwise and of a type 

well known to the trade. But not, however, including Screw 

Machine Products as defined in the proposed Supplementary Code 

for that Industry, as revised February 15, 1934. 

SECTION 3. The term "product" means and includes Cap Screws 

as that term is defined herein. 

SECTION 4. The term " Indu try " n1.eans and includes the business 

of manufacturing Cap Screws for sale. SECTION 5. The term " Member of the Industry " as used herein 

includes, but without limitation, any individual, I artnership, associa-

(4) 
5 

tion, c rporati n r h r form of ent ngaged in th In lu try 

ei h r a an mpl yer or on hi or itR own b half. 

E TI J.~ • The t rm 'em1l } e ·, a. 11. eel h r in in lu l any n 

ngag l in th In u. try in an apa it. rec i ing omp n. ati n for hi ~ rYi . irr , pe tiv of th natur r m thod of paym nt of 'U h 

om n ati n. 

E TI 7. he t rm empl an n 

b.r whom any . u h employee i 

l E TI K . The t rm Ba. i · od 'a. u ... e1 h rein i. d fin 1 to 

Ba ic d f Fair omp tition for th . Fabricated M tal 

1anufac uring and l\1etal Fini hing and ·Metal oating 

In 1u. try a approve 1 b. th Pre id nt n th 2n 1 day of 

oYemb r, 1933. 

E TI :N 9. The t rm "m m er of th ode" as u. C(l herein . hall 

mean anv member of the In u tq who :hall hav a_. nt rl to the 

provi ion f thi upplementar. Cod by in trument in writin · duly 

fil 1 '"ith thr , e r tarv. 

E TION 10. The ter;11 " upplementary Code Authority", a ... used 

h r in, i 1efin 1 to mean the Agenc which is to a lmini ter thi 

upplementar) ode a herein aft r 1 rovided. 

E TION 11. Th term 'Bureau", as u ed herein, i defined to 

mean the United State Ca1 crew Service Bureau or it .·ncce sor. 

ECTION 12. Th term ExecutiYe Committ e' a used herein, i. 

d fine l to mean Executiv Committee of th United tates Cap 

ere" ervice Bureau. 

ECTI N 13. The term ' ecr tary ", as used herein i defined to 

cr tary of the nit cl State Cap Screw Servic Bureau or 

uch ther impartial and confidential agency as the Supplementary 

ode Authority may de ignate. 

ARTICLE III-EMPLOYMENT PROVI ION 

Thi Indu try is a di i ion f the Fabricated l\1 tal Produ ts 

l\Ianufa turino· and Metal Fini hing and M tal oatin · Indu try 

an 1 th wag hour and labor provi ion in Article III of it ba ic 

co 1 a appr v d by th Pre ident N ovemb r 2 1933, in ludina ection 1 f . ai 1 Articl III b. whi h the pro i ion of ub ection (1), 

(2) and (3) of ection 7 (a) of Title I of the Act ar made condition. of thi ode ar pecifi ally in orporat d herein and mad a 

part h r .of a th wag , hour and labor pro i i n of thi Supplementary o 1 . 

HTI LE IV- HGA IZ TION AND D fi I TRATI N 
whose names can be ascertained after diligent search who may vote 

either in person or by proxy. The members of the Supplementary 

Code Authority first elected shall serve until the following annual 

meeting of the Bureau andj or until their successors are elected, :and 

thereafter, members of the Supplementary Code Authority shall be 

elected immediately after each annual meeting of the Bureau to 

serve until their successors are elected, and any member shall be 

eligible for re-election. Notice ·of each el-ection shall be sent in the 

1nanner above provided. The membership of the Supplementary 

Code Authority shall be made up as follows: 

(a) 1. Four (4) Inembers who sh-all be m~mbers of the Industry 

elected by a m_ajority vote of the members of the Bureau present in 

person or represented by proxy, ea<:h member to have one vote; 

2. At an·y time upon request in writing of twenty-five per cent 

(25%) of the members of the Bureau , the Supplementary Code 

Authority , hall call a meeting of the members of the Bureau upon 

the notice above provided, for the purpose of electing successors to 

such fm:ir members of the Supplt>mentary Code Authority to be 

elected in the same 1nanner as provided in Sub-Paragraph 1 of this 

Paragraph (a); -

(b) One (1) member who is not a member of the Bureau elected 

by majority vote of tlie member of the Industry not members of 

the Burea1I, pre ent in person or repre ented by proxy, each member 

to have one vote; 

(c) A vacancy in t he membership of the Su1)plementary Code 

Authority may be filled by majority vote of the remaining members 

of the Supplementary Code Authority; 

(d) In addition to the abDve the Administrator may appoint 

one (1) repre entative without vote and without expense to the 

Indn try unles the Supplementary Code Authority agrees to pay 

such expense, to serve on said Supplementary Code Authority in 

the administration of this Supplementary Code. Said representative 

shall be given rea ·onable notice of all meetings of the Supplementary 

Code Authority. SEcTioN 2. Any Association/ Institute andj or Bureau directly or indir~ctly participating in the selection or activities of the Supplementary Code Authority shall (1) impose no inequitable restrictions 

on membership, and (2) submit to the Administrator true copies 

of its Articles of Association, By-Laws, Regulations and any amend- ments when made thereto, together with such other information as 

to membership, organization, and activities as the Administrator may 

deem necessary to effectuate the purposes of the Act. 

SECTION 3. In order that the Supplementary Code Authority 

shall, at all times, be truly representative of the Industry and in 

other respects comply with the provisions of the Act, the Administrator may prescribe such Hearings as he may deem proper; and, 

thereafter, if he shall find that the Supplementary Code Authority 

is not truly representative or does not in other respects comply with 

the provisions of the Act, the Administrator may prescribe such 

Hearings as he may deem proper; and, thereafter, if he shall find 

that the Supplementary Code Authority is not truly representative 

or does not in other respects comply with the provisions of the Act, 

may require removal of any or all of the members thereof and/or 
7 

mav mak an appr priat modifi ation or modifi ati n the 

method f le ion of th up lem ntar d 

ECTI N 4. The uppl m ntary ode Auth rity i h r by on titute the AO'ency to admini t r the provi ion of thi u plem ntary 

Code an to coli ct an l li ribut all tati ti al r port of the Ind try. 1Vi h a 'i w t k pin the Pre id nt informed a to the 

obser ·anc r non-ob rva.nce of thi Supplem ntary Co , . aid 

agen y hall ·oll t, thr UO'h the cretar uch tati tic a call d 

for b the Pr id nt and/ r the Admini trator and end th m in 

uch f rm a the Pre id nt an j or the Admini trator ma r quir to 

the Fabr~cated JHetal Product Federation r , u or organization a the ugen y admini tering . aid Ba ic ode. A 11 individual 

report hall be tr at as nfidential by the Secretar. and hall 

not be di clo ed to any member of the Indn try or any other party 

except wher n e sary in th en£ rcement of this Code and except to uch goYernmental agencie a may b directed by the 

Administrator. 

E TIO~ 5. aid Agen y hall al o from time to time furni h t the 

Ba ic ode Authority de i O'nat d in aid Ba ic Code such information as ma be require to be furni hed under the tern1 of . aid 

Basic ode. · 

SE cTIOX 6. Th Sui plementary Code Authority hall hav power 

from time to time to r quire each member of the Indu try to furnish 

to the ecretary such inf,ormation concerning the production hipment ales and or ler of uch member and the hour of labor rat s 

of pay and other condition of employment at the plant or plants 

of such member and uch other information a the sail Supplem ntary ode Authority hall deem nece ary or proper in order to 

effectuate the purpo e of thi Supplementary Code and the policy of 

the Act. All individual r ports hall be treated a confidential by 

the Secretary an hall not be eli clo eel to any member of the Indu try or any other party except where neces ary in the enforcement 

of thi ode and except to uch goYernn ental agencies a rna be 

directed by the Admini trator. 

ECTION 7. The upplem ntary Cole Authority may requir that 

an u h information be furnished periodically at such tim a it 

hall p cify and may r quir that any or all information furni h d 

be ·worn to or otherwi ertifie l or c uth nticated a it hall precrib . Failure of any m mb r of the Industry promptly to furni h 

to the Secretary inf rma ion required by the aid Supplem ntary 

Code uthority and ub tantially in the form pr crib d by it shall 

con titute a iolation of th d . The Suppl m ntary Cod Authorit hall not requir an~ inf rmati n reo-arding tra le ecret . E Tro,_- . ny or all inf rmati n furni h d to the r tar by an~ orporat mem er f th ndu ry pccjfically a enting h r to 

pur.-·uant to the pr Yi i .~ f thi uppl m ntary d hall b ubje t to v rifi a ion by an -aminati n of the p rtin nt or n c 

book , a count an l r r · f ·uch m m r by th ret r. r by 

any accountant or ace untant · r th r p r n r r ·on de iD'nate 

by th nppl m ntary od uthorit. (none of wh m , hall 

n cte l with any m m r f th Indu. tr. ) an l hall b h k l 

for uch purpo ·e if th uppl mentary o uthority . hall require 
8 

it. The cost of each such examination shall be treated as an expense 

of admini tering the Supplementary Code. 

SECTION 9. AU members of the Industry are subject to the jurisdiction of th e Supplemental'y Code Authority; shall be entitled to participate in and hare the benefits of the Supplementary Code Authority; shall be ntitled to vote in the selection of the Supplementary 

Code Authority as provided in Section 1 of this Article; an 1 hall 

pay to the Secretary a the agent of the Supplementary Cocrl€ .Authority their reasonable share of the exp:.mses of the Admini tration 

of this Supplementary Code, such reasonable share to be determined 

by the Supplementary Code Authority, subject to review by the 

Admini trator, on the basis of volume of business andj or such other 

factors as may be deemed equitable by the Supplementary Code 

Authority. 

SECTION 10. Nothing contained in this Supplementary Code shall 

be deemed to constitute the members of the Supplementary Code 

Authority partners for any purpose whatsoever. Nor shall any 

member of the Supplementary Code Authority be liable in any manner to anyone for any act of any other member officer, agent or 

employee of the Supplementary Code Authority. Nor hall any 

member of the Supplementary Code Authority, exercising reasonable 

diligence in the conduct of his duties hereunder, be liable to anyone 

for any action or omission to act under this Supplementary Code, 

except for hi own willful misfeasance or non-feasance. 

SECTION 11. The Supplementary Code Authority may adopt, subject to the approval of the Administrator, and thereafter all member 

of the Industry shall maintain, uniform credit term . Such credit 

terms shall clearly appear on all quotations, invoices and acceptances 

of orders. 

SECTION 12. If any member of the Industry as defined herein is 

also a member of any other Industry, the provisions of this Supplementary Code shall apply to and affect only that part of his 

business which is included in the Industry. 

SECTION 13. The Supplementary Code Authority shall without any 

limitation on the foregoing have the following further ge.neral 

powers and duties subject to such rules and regulations as the 

Administrator may prescribe: 

(a) To insure the execution of the provisions of this Supplementary Code and provide for the compliance of the Industry with 

the provisions of the Act; 

(b) To adopt by-laws and rules and regulation , for its procedure and for tho administration of the Supplementary Code; 

(c) To obtain from members of the Industry snch information 

and reports as are required for the administration of the Supplementary Code. In addition to information required to be submitted to the Supplementary Code Authority, all or any of the 

persons subject to this Supplementary Code shall furnish such statistical information as the Administrator may deem neces ary for 

the purposes recited in section 3 (a) of the Act to such Federal and 

Stata agencies as the Administrator may designate. Provided that 

nothing in this Supplementary Code shall relieve any member of the 

Industry of any existing obligations to furnish reports to any 

government agency; 
9 

(d) To use su h trud a. o iati n an oth r ag n ies as it de ms 

proper for th carrvin · ut f an · · it actiYiti pro ided for 

h rein pro id d tha n thin()' h .. r in hall r li ve th upr lemon.tary 

ode Auth ri... f it uti r r n ibiliti un(ler thi 

n entary od an tl at uch trale a ,·,ociaii n n ac:rencie hall 

at all time be ubj t to an l c mply with th provi i n hereof; 

(e) T make recomm ndation to the dn ini trator for th aordination of the admini tration of this up.}lementary ode ith 

sucb other odes if G 11), a may b relat~ 1 to the Industry; 

(f) To ecure from member of the Indu · ry an equitable and 

pr portionat payment of the r a 01 able e:q nse of maintaining 

th uprlementary ad ~uthority an 1 it a tiviti ; 

(g) T cooperate with the Admini trator in regulating the use 

of any N.R.A. insic:rnia olely by thos memb r of the Indu try who 

ha e a nt~d to, an 1 are complying with, this Supplementary Code; 

(h) To recommend to the Aclrnini trutor further fair trade practice provi ions to go ern members of the Industry in their relations 

with each other or with other indu trie and to recommend to 

the Admini trat r m a ure for indu-.trial plannino· including 

stabilization of employment. 

SECTION 14. If the Administrator belie,,e that any action of the 

Supplementary ode Authority or any arren y thereof i unfair or 

unjust or ontrar) to the public int re t, the Admini trator may 

require that ·nch action be uspended to aff rcl an opportnnity f r 

investigation of th merit of uch a tion. Further action b uch 

Supplementary ode Authority or agen regarding the matter c mplained f may be tak n if approved by the Administrator but hall 

n t be taken if di approv d by the A mini b·ator within thirt la '"=> 

of notice to him of in ention to pro eed \vith 1ch a tion. 

AR1:ICLE V-Pru E Lr T 
10 

go into effect, or at a subsequent specified date, revisions of their 

price data, establishing prices not more f avorable to the purchaser· than those established in the revised price data first filed. 1 

SECTION 3. No member of the Indu try shall make any sale or 

quotation of any product of the Industry at a price or on conditions 

more favorable to the purchaser thereof than the price, terms and 

conditions so .filed by such member in accordance with the provisions 

of this Supplementary Code and in effect at the time of such sale'; nor 

shall any member of the Industry make any contract of sale of any 

product of the Industry at a price or on condibons more favorable to 

the purchaser thereof than the price, terms and conditions established a.s aforesaid and in effect at the time of the making of such 

contract of sale. For all purposes of this Article a delivery of any 

product made pursuant to a contract of sale shall be regarded a a 

sale thereof made at the time of the making of such contract. 

SECTION 4. No provision of this Supplementary Code relating to 

prices or terms of selling, shipping or marketing shall apply to 

export trade or sales or shipments for export trade within the 

meaning of the term " export trade " as it is used in the Export 

Trade Act. 

ARTICLE VI-SALES BELow REASON ABLE CosT 

Notwithstanding any other provision of this Supplementary Code, 

when the Supplementary Code Authority determines that an emer- _ 

goncy exists in this industry and that the cause thereof is destructive 

price-cutting such as to render ineffective or seriously endanger 

the maintenance of the provisions of this Supplementary Code, the 

Supplementary Code Authority may cause to be determined the 

lowest reasonable cost of the products of this industry, such determination to be subject to such notice and hearing as the Administra· 

tor may require. The Administrator may approve, disapprove, or 

modify the determination. Thereafter, during the period of the 

emergency, it shall be an unfair trade practice for any member of 

the Industry to sell or offer to sell any products of the Industry for 

which the lowest reasonable cost has been determined at uch prices 

or upon such terms or conditions of sale that the buyer \Vill pay less 

therefor than such lowest reasonable cost of such products. 

When it appears that conditions have changed, the Supplementary 

Code Authority, upon its own initiative, or upon the request of any 

interested party, shall cause the determination to be reviewed. 

AR'ITOLE VII-UNFAIR PRACTICES 

SECTION 1. For all purposes of this Supplementary Code the following described acts shall constitute unfair practices. Such unfair 

practices shall be deemed to be unfair methods of com.petition in 

commerce within the meaning of the Federal Trade Commission 

Act as amended, and any member of the Industry who shall directly 

or indirectly through any officer, employee, agent or representative 

use or employ any of such unfair practices shall be guilty of a 

violation of this Code : 

1 See paragraph 2 of order approving this Code. 

• 
11 

or inventories 
12 

K. Making contracts of sale that permit the buyer to cancel 

and/or provide for a reduced price i.n event of a market decline, 

but which do not permit the seller to cancel and/or do not proviae 

·for an enhanced price in the event of a market r.ise. 

L. l\1aking contract· requiring delivery of specified quantity or 

quantities in specified tjme, if demanded by buyer, but not requiring 

the buyer to accept such quantity or quantities within the specified 

time. . . J " 

M. Making contracts at· a specified price for an unspecified quantity for delivery a demanded by the buyer during the period unless 

the contract is for a fixed percentage of the total cons_umption requirements of th.e purchaser of the particular product; or making 

any such unspecified quantity contract above described except on a· 

standard form or forn1s approved by the Supplementary Code 

Authority and the Administrator ; or failing to file with the Secretary a copy of each and every differ nt form of contract entered 

into by a member of the Industry within five days after entering 

into a contract in such form. 

N. Making contracts for periods in excess of three months (all 

contracts to expire not later than the last days of March, June, September or December) or quoting on or making any quarterly 

contract more than thirty (30) days prior to the first day of the 

calendar quarter covered by the contract, or shipping pursuant 

to any contract more than fif-teen (15) days after the .expiration 

thereof, or as oon thereafter as seller can manufacture and ship 

the same, or making contr acts containing an option of extension 

or renewal on the l)art of either buyer or seller. 

0. Accepting oi·ders for deliveries extending beyond four ( 4) 

months from date of order. 

P. Offering any article by price or otherwise in a manner to 

influence the purchase of another article. 

Q. Appointing, continuing to employ or paying a commission, 

salary or any other form of compensation to, a jobber or dealer or 

syndicate buyer of any character as an agent, except \lnder circumstances where such jobber, dealer or syndicate buyer acts clearly 

as an agent and does not simultaneously perform the functions of 

a jobber, dealer or syndicate buyer in a specific transaction or transactions, or entering into any kind of an exclusive territory arrangement with a jobber, dealer or syndicate buyer. 

R. Continuing to employ any salesman, agent or employee who 

shall give any or all of his commission to any purchaser. 

ARTICLE VIII-MoNOPOLIES 

No provision of this Supplen1entary Code shall be applied so as 

to permit monopolies or monopolistic practices, or to eliminate, 

oppress or discriminate against small enterprises. 

ARTICLE IX-MODIFICATIONS 

SEOTION 1. This Supplementary Code and all the provision_s thereof are expressly made subject to the right of the President, in 

accordance with provisions of subsection (b) o:f Section 10 of the 
13 

Act from time to time to an I r modify any order, approval, 

licen , rule or r o-ulation i u d under aid Act. 

E TIO .. - 2. Thi uprl m ntary ode. x pt a to provi ions 

required by th ct may mo Efie l or amended on the basi of 

xperienc or hano-e · in ircnm tan u ·h modifi ati.ons or ainendment to be ba ed upon appli.cation by th upplementary ode _ uthority or other repre entative gr np within the Indu try to the 

Admini trator and uch Notice and Hearing a h shall pecify and to 

be ome ffective and be a part of this Supplementary Code on 

approval by the President. 

ARTICLE X-Pnr E lNCREA E 

Wher as the policy of the Act to increase real purchasing power 

will be made more difficult of consummation if prices of good and 

ervice increa e a rapidly as wages it is recognized that price in- crea es except such as may be required to meet individual costs hould 

be delayed, but when made, such increaseP hould, so far as pos ible, 

be limited to actual additional increases in the eller's co ts. 

ARTICLE X l-EFFECTI\""E DATE 

This supplementary Code shall become effective at 12: 01 o' loch: 

A. M. Ea tern Standard Time of the tenth day after it is approYecl 

by the President and shall continue in effect until June 16, 1925, or 

the earlie t date prior thereto on which th President shall, by 

proclamation, or the Congress shall, by joint re olution, declare that 

the emergency recognized by Section 1 of the Act, has ended. 

Approv d Code No. 84. Supplement No. 19. 

Regi try No. 1104-05. 

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UNIVERSITY OF FLORIDA 

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